Office construction 'set to fall'

Office construction in the UK is set to fall by almost a quarter next year, according to new research.

The report by the Construction Products Association (CPA), which may signal limited investment opportunities in the sector, forecast that levels of construction in the market will fall by 24 per cent.

It was also suggested that the number of housing starts in the UK this year stood at 135,000, which is its lowest level since 1924.

Michael Ankers, chief executive of the CPA, said he had written to the government with suggestions as to how it could help the industry.

He added: "These include addressing the problems of liquidity and credit, reigniting the housing market, improving the energy efficiency of the existing housing stock and reducing the regulatory and fiscal burden on industry."

Recent figures from Savills suggested that prime office space in Europe is becoming cheaper.